Tarun Sharma
Moneycontrol News
The Ministry of Corporate Affairs (MCA) has approached the Mumbai bench of the National Company Law Tribunal (NCLT) seeking relief against any criminal, civil liability or punitive action against the IL&FS group and its newly-formed board.
The petition was filed by MCA’s Western Regional Director Manmohan Juneja and argued by MCA counsel Sanjay Shouriey, prosecution and legal director.
MCA referred to various reliefs that were given to the new board of Satyam when it was in the transformation stage.
It requested that creditors and investors not take any legal actions against the new board without informing NCLT.
MCA has also requested that default by an IL&FS subsidiary in future not hamper directorship in other companies. According to a provision in the Companies Act if a company defaults then a director on its board risks losing directorship in other companies too.
On October 1, the NCLT had allowed the government to take over IL&FS' board and institute a new board headed by Uday Kotak.
The NCLT asked the newly-appointed board to devise an action plan by October 15.
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